Accounting for technology, trade and final consumption in employment : an Input-Output decomposition

available as Insee working paper, with Mathilde Pak

What are the driving forces of changes in employment in France over the last thirty years and how can we explain skill-biased changes in employment? Based on Input-Output analysis we provide a decomposition of changes in employment between the contributions of three channels : technology, trade and final consumption. Our goal is to assess these contributions to employment changes by skill level over the period 1982-2010. Our analysis builds on textbook methodologies of structural decomposition, but innovative data: INSEE’s Input-Output tables both in current and previous year prices, based on the new ESA2010 concepts. Our main findings are that technology shows marked skill-bias, whereas trade and final consumption have limited skill-bias effects. The development of high-technology manufacturing and R&D over the last thirty years mainly contributes to this skill-biased change in employment. We find a positive contribution of trade to  employment at every skill level.

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